Morning Commentary: Tyson, Boeing, AT&T, Welltower, Quebec, EIB, others market notes

By Cristal Cody

Tupelo, Miss., Feb. 13 – Investment-grade bond issuers continued to pour into the market early Wednesday following more than $26 billion of deals priced in the first two sessions.

Tyson Foods, Inc. plans to tap the primary market with a three-part offering of new and reopened senior notes on Wednesday.

The company held fixed income investor calls on Tuesday ahead of the offering, a source said.

Also in the corporate primary market, Boeing Co. intends to price $1.5 billion of senior notes in four tranches.

AT&T Inc. is marketing two tranches of 10- and 20-year global notes.

Welltower Inc. is on deck with two tranches of notes due 2024 and 2029.

Also on Wednesday, Quebec is offering dollar-denominated global notes registered with the U.S. Securities and Exchange Commission.

In other supply expected during the session, Export Development Canada is marketing a dollar-denominated offering of five-year global notes.

The notes were initially talked to price in the mid-swaps plus 9 basis points area.

In addition, European Investment Bank intends to price a dollar-denominated offering of notes due May 20, 2022. Initial price talk was in the mid-swaps plus 5 bps area.

Meanwhile, FHLBank System announced plans to price new five-year global notes on Thursday.

Volume already has met supply forecasts for the week with a boost from Altria Group Inc., which priced an $11.5 billion seven-tranche offering of senior notes on Tuesday.

Week to date, more than $26 billion of high-grade bonds have priced.

Syndicate sources expected about $25 billion to $30 billion of total supply this week.

New issues are trading mostly better in the secondary market, a source said.

Trading volume totaled $22.04 billion on Tuesday, up from $18.94 billion on Monday, according to Trace data.

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